Correlation Between Origin Agritech and Apollo Investment
Can any of the company-specific risk be diversified away by investing in both Origin Agritech and Apollo Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Origin Agritech and Apollo Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Agritech and Apollo Investment Corp, you can compare the effects of market volatilities on Origin Agritech and Apollo Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Origin Agritech with a short position of Apollo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Agritech and Apollo Investment.
Diversification Opportunities for Origin Agritech and Apollo Investment
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Apollo is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Origin Agritech and Apollo Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Investment Corp and Origin Agritech is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Origin Agritech are associated (or correlated) with Apollo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Investment Corp has no effect on the direction of Origin Agritech i.e., Origin Agritech and Apollo Investment go up and down completely randomly.
Pair Corralation between Origin Agritech and Apollo Investment
Assuming the 90 days trading horizon Origin Agritech is expected to generate 5.87 times more return on investment than Apollo Investment. However, Origin Agritech is 5.87 times more volatile than Apollo Investment Corp. It trades about 0.16 of its potential returns per unit of risk. Apollo Investment Corp is currently generating about 0.07 per unit of risk. If you would invest 195.00 in Origin Agritech on November 7, 2024 and sell it today you would earn a total of 41.00 from holding Origin Agritech or generate 21.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Origin Agritech vs. Apollo Investment Corp
Performance |
| Timeline |
| Origin Agritech |
| Apollo Investment Corp |
Origin Agritech and Apollo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Agritech and Apollo Investment
The main advantage of trading using opposite Origin Agritech and Apollo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Agritech position performs unexpectedly, Apollo Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Apollo Investment will offset losses from the drop in Apollo Investment's long position.| Origin Agritech vs. CanSino Biologics | Origin Agritech vs. Wizz Air Holdings | Origin Agritech vs. T MOBILE US | Origin Agritech vs. Corsair Gaming |
| Apollo Investment vs. Samsung Electronics Co | Apollo Investment vs. STEEL DYNAMICS | Apollo Investment vs. Renesas Electronics | Apollo Investment vs. Delta Electronics Public |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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